Tuscany Announces Record Levels of Production, Revenue and Cash Flow for Year Ended December 31, 2014

CALGARY, ALBERTA–(Marketwired – April 2, 2015) – Tuscany Energy Ltd. (TSX VENTURE:TUS) is pleased to announce the results of its financial and operating results for the year ended December 31, 2014.

During 2014 the Company’s principal goals were to expand its heavy oil development drilling program, increase its oil reserves and maintain a conservative balance sheet.

2014 Highlights:

Financial

Record full year revenues of $17.6 million, increased from $10.1 million in 2013.

Cash flow increased to $8.1 million in 2014, up from $3.4 million in 2013.

Year-end net debt was reduced to $6.8 million from $7.4 million in 2013.

Net debt to cash flow was reduced to 0.8 times for the year and 0.9 times for the Q4 2014 cash flow annualized.

Most significantly, Tuscany saw increased support from the capital markets and successfully raised $5.7 million in 4 equity issues over the past 15 months, while two brokerage firms also initiated independent research coverage on the Company.

The significant decline in commodity prices in late 2014 resulted in the Company taking an impairment charge of $4.1 million and an increased allowance against future tax assets of $1.9 million. Tuscany reported a net loss of $5.1 million for the year ended December 31, 2014.

Production

The Company reported average production of 751 BOEd for the year, up from 478 in 2013, and 916 BOEd for Q4 2014, up from 702 BOEd in Q4 2013.

Reserves

Tuscany’s year end proved plus probable reserves totaled 2.9 million BOE, up from 2.3 million BOE in 2013.

The present value of the estimated future net revenue from Tuscany’s reserves, discounted at 10%, increased 40% to $62 million, up from $39 million at December 31, 2013.

Development Drilling

Tuscany drilled and completed 7 new horizontal heavy oil wells in the Macklin and Evesham pools during 2014.

The Company made a significant step out discovery in North Macklin and de-risked the Morgan prospect by drilling its first horizontal well on this prospect.

The Company ended 2014 with over 80 potential development locations among its portfolio of heavy oil properties.

Outlook

With its conservative balance sheet and a substantial portfolio of development locations the Company expects to resume its growth when satisfactory prices prevail. At the time of writing the Company is encouraged that recent prices are trending upwards and would anticipate that normal operations could resume at the end of the second quarter or early in the third quarter of 2015.

Tuscany has filed its Audited Financial Statements and MD&A for the twelve months ended December 31, 2014 on SEDAR and its website.

Please refer to Tuscany’s website at www.tuscanyenergy.com for more information on the Company’s Evesham and Macklin fields and other prospects in Alberta and Saskatchewan.

Advisories & Contact

ADVISORY:

Forward looking statements: This news release contains certain forward-looking information and statements within the meaning of applicable securities laws. The use of any of the words “expect”, “anticipate”, “continue”, “estimate”, “may”, “will”, “project”, “should”, “believe”, “plans”, “intends” and similar expressions are intended to identify forward-looking information or statements. In particular, but without limiting the forgoing, this news release contains forward-looking information and statements pertaining to the following: the volumes and estimated net present value of Tuscany’s oil and gas reserves.

The estimates of Tuscany’s reserves and the net present value of the future net revenue attributable thereto provided herein are summaries of the evaluation as at December 31, 2014, prepared by McDaniel & Associates Consultants Ltd. and are estimates only and there is no guarantee that the estimated reserves will be recovered or that the forecast prices and costs assumptions such estimates are based upon will be attained. In addition, forward-looking statements or information are based on a number of material factors, expectations or assumptions of Tuscany which have been used to develop such statements and information but which may prove to be incorrect. Although Tuscany believes that the expectations reflected in such forward-looking statements or information are reasonable, undue reliance should not be placed on forward-looking statements because Tuscany can give no assurance that such expectations will prove to be correct. In addition to other factors and assumptions which may be identified herein, assumptions have been made regarding, among other things: that Tuscany will continue to conduct its operations in a manner consistent with past operations; results from drilling and development activities; the continued and timely development of infrastructure in areas of new production; the accuracy of the estimates of Tuscany’s reserve volumes; continued availability of debt and equity financing and cash flow to fund Tuscany’s current and future plans and expenditures; the impact of increasing competition; the general stability of the economic and political environment in which Tuscany operates; the general continuance of current industry conditions; the timely receipt of any required regulatory approvals; the ability of Tuscany to obtain qualified staff, equipment and services in a timely and cost efficient manner; drilling results; the ability of the operator of the projects in which Tuscany has an interest in to operate the field in a safe, efficient and effective manner; the ability of Tuscany to obtain financing on acceptable terms; future commodity prices; currency, exchange and interest rates; regulatory framework regarding royalties, taxes and environmental matters in the jurisdictions in which Tuscany operates; and the ability of Tuscany to successfully market its oil and natural gas products.

The forward-looking information and statements included in this news release are not guarantees of future performance and should not be unduly relied upon. Such information and statement, including the assumptions made in respect thereof, involve known and unknown risks, uncertainties and other factors that may cause actual results or events to differ materially from those anticipated in such forward-looking information or statements including, without limitation: changes in commodity prices; changes in the demand for or supply of Tuscany’s products; unanticipated operating results or production declines; changes in tax or environmental laws, royalty rates or other regulatory matters; changes in development plans of Tuscany or by third party operators of Tuscany’s properties, increased debt levels or debt service requirements; inaccurate estimation of Tuscany’s oil and gas reserve volumes; limited, unfavourable or a lack of access to capital markets; increased costs; a lack of adequate insurance coverage; the impact of competitors; and certain other risks detailed from time-to-time in Tuscany’s public disclosure documents, (including, without limitation, those risks identified in this news release). Furthermore, the forward-looking statements contained in this news release are made as at the date of this news release and the Company does not undertake any obligation to update publicly or to revise any of the included forward-looking statements, whether as a result of new information, future events or otherwise, except as may be required by applicable securities laws.

Drilling locations: Disclosed herein are drilling locations in three categories: (i) proved locations; (ii) probable locations; and (iii) unbooked locations. Proved locations and probable locations are derived from the McDaniel Report and are drilling locations that have associated proved and/or probable reserves, as applicable. Unbooked locations are internal estimates based on prospective acreage and an assumption as to number of wells that can be drilled per section based on industry practice and internal review. Unbooked locations do not have any attributed reserves or resources. Of the 80 development locations identified herein, 19 are proved locations, 15 are probable locations and 46 are unbooked locations. Unbooked locations have been identified by management as an estimation of our future drilling activities based on an evaluation of applicable geological, seismic, engineering, production and reserves information. There is no certainty that we will drill all unbooked locations, and if drilled, there is no certainty that such locations will result in addition oil and gas reserves, resources or production. The drilling locations on which we actually drill wells will also be dependent upon the availability of capital, regulatory approvals, seasonal restrictions, commodity prices, costs, actual drilling results, additional reservoir information that is obtained and other factors. While certain of the unbooked drilling locations have been de-risked by drilling existing wells in relatively close proximity to such unbooked drilling locations, other unbooked drilling locations are farther away from existing wells where management has less information about the characteristics of the reservoir therefor there is more uncertainty whether wells will be drilled in such locations and, if drilled, there is more uncertainty that such wells will result in additional reserves, resources or production.

Non-GAAP measures- referred to in the corporate summary are defined in the MD&A filed on Sedar

BOE information

Where amounts are expressed on a barrel of oil equivalent (BOE) basis, natural gas volumes have been converted to barrels of oil on the basis of six thousand cubic feet (mcf) per barrel (bbl). BOE figures may be misleading, particularly if used in isolation. A BOE conversion of six thousand cubic feet per barrel is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead. Given that the value ratio based on the current price of crude oil as compared to natural gas is significantly different from the energy equivalency of 6 mcf: 1 bbl, using a conversion on a 6 mcf: 1 bbl basis may be misleading as an indication of value. References to oil in this discussion include crude oil and natural gas liquids (NGLs).

NEITHER THE TSX VENTURE EXCHANGE NOR ITS REGULATION SERVICES PROVIDER (AS THAT TERM IS DEFINED IN THE POLICIES OF THE TSX VENTURE EXCHANGE) ACCEPTS RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE.